PEN.WA WACC - Weighted Average Cost of Capital

The WACC of Photon Energy NV (PEN.WA) is 6.7%.

The Cost of Equity of Photon Energy NV (PEN.WA) is 9.30%.

The Cost of Debt of Photon Energy NV (PEN.WA) is 6.80%.

	Range	Selected
Cost of equity	7.50% - 11.10%	9.30%
Tax rate	7.30% - 16.40%	11.85%
Cost of debt	6.60% - 7.00%	6.80%
WACC	6.5% - 7.0%	6.7%

WACC

PEN.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.32	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	11.10%

Tax rate	7.30%	16.40%
Debt/Equity ratio	3.49	3.49
Cost of debt	6.60%	7.00%

After-tax WACC	6.5%	7.0%


Selected WACC	6.7%

PEN.WA's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for PEN.WA:

cost_of_equity (9.30%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.32) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.